Notice the language used by the "smart folks" who struck the bipartisan budget deal on Capitol Hill. When they talk about raising spending from $967 billion to $1.012 trillion, they are not talking about the whole federal budget--only discretionary spending. This year, the government spent a total of almost $3.5 trillion, including entitlement programs and interest on the debt:

"The budget proposal saves $28 billion over ten years by requiring the President to sequester the same percentage of mandatory budgetary resources in 2022 and 2023 as will be sequestered in 2021 under current law."